The outbreak of the highly pathogenic avian influenza — H5N1 — from the second week of January to August last year had hit the poultry sector, due to which the retail price had peaked to Rs 450 a kg in September, according to The Himalayan.

"Finally, after more than a year, the poultry market is almost back on track," said management member at Valley Cold Store in Balaju Sakshyam Ghimire. These days the store is selling around 4,500 kg dressed chicken in bulk at around Rs 270 a kg and its retail price is Rs 280 a kg. Before the outbreak of bird flu last year, store was selling around 5,000 kg dressed chicken at similar wholesale and retail prices.

After the outbreak of the avian influenza in the second week of September last year, the store sold 250 kg of dressed chicken at a wholesale price of Rs 400 per kg, with retail price hovering at around Rs 450.

"The price of chicken has declined because supply has become regular especially, from the Terai region — Biratnagar, Itahari, Birgunj, Chitwan and Butwal," said Mr Ghimire.

"The price could further decline in the coming two months when chickens from Bhaktapur district arrive in the market," said chairman of Bhaktapur Poultry Farmers’ Association Tulsi Ram Dhukkhwa.

Bird flu affected 515 poultry farmers in Bhaktapur district — a crisis declared zone — where the government culled 533,378 chickens and 156,726 chicks last year. In total, more than 1,000 farmers incurred losses in 10 districts across the country because of more than 60 outbreaks last year.

As per data from the Nepal Directorate of Animal Health, last year, from mid-July to mid-September, 2.6 million units of eggs were destroyed in the country followed by 1,407 kg meat and 134,487 kg feed.

The government later compensated the farmers by distributing more than Rs 200 million. As per data, the recent bird flu outbreak caused a loss of over Rs seven billion.